MP Plan terminated 1/99; IRS termination approval 11/99; notice of IRS

[Guest AndyL]

Money Purchase Plan terminated as of 1/26/99. Filed for IRS approval 4/9/99 and received approval 11/9/99. All the assets have been properly distributed.

Just recieved notice that the IRS want to audit the plan for the pye 6/30/99. They have a list of 24 items to gather for the audit. Explained to the reviewer that the plan was just reviewed and approved for the plan termination and asked if he could scale down his requirements for the audit. He said he could not.

This seems like an unfair burden and expense for the taxpayer.

Any suggestions?

[Alf]

Technically, the determination letter review just relates to the document. The audit will go much farther into the administration of the plan and the auditor needs the documentation, etc. in order to get up to speed on the plan provisions. We had a hard time getting the IRS to scale down their request in our audit, but they eventually did. It seemed that initially the IRS wanted us to try and get everything they asked for, but when we later found out (and documented to the IRS) that some of it was impossible or unreasonably burdensome to get, they allowed us to provide as much as we could get. It wasn't enough for us to just say that it was burdensome, without trying to comply.